Budget management requires rigor and regularity, but an accident in life can quickly call everything into question, the grouping of credits is a banking operation designed to deal with these problems of financial balance, the optimization of finance is therefore the objective.
Optimizing a budget generally amounts to reducing expenses (optimizing) to gain room for manoeuvre, which very often translates into an increase in purchasing power. It is therefore easy to compare internet packages for the home, mobile packages for telephony or even gas suppliers, but beyond that, the optimization of finances has its limits.
It is therefore necessary to find other sectors of expenditure which will make it possible to earn euros or at least to better distribute them over time. This is the case with the grouping of credits which makes it possible to reduce the monthly share allocated to the repayment of loans. Only households with outstanding loans are concerned by this solution, the others will have to think of other budget optimization ideas.
Credit consolidation is a banking operation that allows several loans to be combined into one. The idea is simple, the implementation is less so. In fact, a borrower can at any time decide to consolidate their loans. He will then contact a specialized organization (example: Solutis) asking him to reduce his monthly payments. The organization will take care of recovering the supporting documents necessary for the examination of the file and then proposing one to several financing offers meeting the needs of the borrower in terms of the amount of monthly payments.
Some professionals agree that the drop in monthly payment can reach -60% but most do not specify that this drop linked to the extension of the repayment period can lead to an increase in the total cost of credit, it is the condition to be able to repay less each month. As soon as the borrower accepts the loan consolidation offer, the new lender reimburses the old creditors and takes over the debt, which is unique. In return, the borrower agrees to repay his monthly payments according to the conditions provided (duration, rate, monthly payment).
This banking operation does not erase a debt, it spreads it and potentially increases it. We are still talking about optimization because the household can avoid a situation of over-indebtedness thanks to the repurchase of loans, by reducing the amount of its monthly payments, it manages to recover a more stable situation and serenity on a daily basis. Optimization is therefore there, but like any financial transaction, it is essential for the household to be well informed and to compare its situation before and that proposed in the loan offer.
For this reason, another idea of optimization can accompany the operation, namely the insurance of the loan. It is not compulsory but strongly recommended, it is possible to reduce the contribution to a minimum by proceeding to a delegation of insurance, that is to say taking out an offer presenting the same guarantees as the lender but at a higher price. interesting.